# Fertilizer, fuel costs low, but for how long?

> Fertilizer and fuel costs remain near decade-plus lows, but nutrient prices on a typical corn acre are up 7% from COVID-19 lows as growers ramp up fall applications. Urea, potash and phosphate prices are all higher, with India's new urea tender and Chinese export policy key to urea.

- Date: 2020-11-24 · published 2020-11-24T12:00:00.000Z
- Category: trade · region Global · magnitude medium
- Page: https://feedsoft.ai/events/4394-fertilizer-fuel-costs-low-but-for-how-long
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md), [Potash (KCl)](https://feedsoft.ai/c/POTASH.md), [DAP](https://feedsoft.ai/c/DAP.md)

## Why it matters

Rising urea, potash and phosphate costs raise input expenses for 2021 feed grain production and could squeeze farm margins. Demand from India and China will set near-term nitrogen price direction.

## Read by commodity

- DAP: bullish ▲
- UREA: bullish ▲
- POTASH: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DAP | 2020-11-27 | 1 | +6.7% | 12.2 | Reports of rising phosphate prices (DAP) alongside urea and potash as growers ramp up fall applications points to firmer demand, which could partly support a DAP price jump, though the 7% rise is described as cumulative from COVID lows and not a one-day shock. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2021-10-11 | [Brazilian farmers also see fertilizer costs double](https://feedsoft.ai/events/44891-brazilian-farmers-also-see-fertilizer-costs-double.md) | +0.3% | +6.4% |
| UREA | 2021-08-23 | [US Corn Growers Could Face Higher Fertilizer Costs From Import Tariffs](https://feedsoft.ai/events/45494-us-corn-growers-could-face-higher-fertilizer-costs-from-import-tariffs.md) | +1.9% | +20.1% |
| UREA | 2022-02-23 | [With fertilizer costs high and seeds scarce, U.S. farmers turn to soy \| Reuters](https://feedsoft.ai/events/42759-with-fertilizer-costs-high-and-seeds-scarce-u-s-farmers-turn-to-soy-reuters.md) | +17.4% | +41.3% |
| UREA | 2022-03-02 | [Waive fertilizer dumping duties, corn farmers ask](https://feedsoft.ai/events/42257-waive-fertilizer-dumping-duties-corn-farmers-ask.md) | +22.0% | +20.9% |
| UREA | 2026-05-01 | [China tightens border inspections for fertilizer exports, sources say](https://feedsoft.ai/events/19636-china-tightens-border-inspections-for-fertilizer-exports-sources-say.md) | -11.0% | -18.0% |
| DAP | 2024-02-21 | [India to sign long-term deal for buying key fertilizer input from Mauritania \| Today News](https://feedsoft.ai/events/32005-india-to-sign-long-term-deal-for-buying-key-fertilizer-input-from-mauritania.md) | +0.4% | +8.6% |
| DAP | 2020-07-28 | [Heartburn hits fertilizer market](https://feedsoft.ai/events/5058-heartburn-hits-fertilizer-market.md) | +5.7% | +11.7% |
| DAP | 2021-04-11 | [Trade decision will raise fertilizer costs - High Plains Journal](https://feedsoft.ai/events/47920-trade-decision-will-raise-fertilizer-costs-high-plains-journal.md) | +0.1% | +5.4% |

## Sources

- farmprogress.com: https://www.farmprogress.com/marketing/fertilizer-fuel-costs-low-but-for-how-long-

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.